Should Netflix Stop Outsourcing Its Content Deals?

Netflix outsources all of the creative work on its original shows, which raises the hackles on many critics. How unusual is this model, really?

Netflix(NASDAQ:NFLX) airs a handful of original shows, including Emmy winner House of Cardsand future awards favorite Orange Is the New Black. But the streaming video veteran doesn't actually produce these shows in-house, preferring to farm that work out to specialists in the field.

Many Netflix skeptics see this outsourcing model as a sign of weakness, doomed to long-term failure. But is that really true?

In the video below, Fool contributor Anders Bylund explains how AMC Networks(NASDAQ:AMCX) and Time Warner's(NYSE:TWX) HBO actually follow the same model in many cases. Lions Gate(NYSE:LGF) and Sony(NYSE:SNE) may not own any American distribution networks, but they're more than happy to create high-quality content like Breaking Bad or Mad Men for others to distribute. Netflix simply follows a tried-and-true industry practice here.